10-Q · May 4, 2026
Alamo Group posted robust Q1 2026 results with net sales of $417.1 million, exceeding estimates by $19.8 million, up 7% year-over-year. Adjusted diluted EPS was reported at $2.56, a 0.36 beat over estimates, driven by…
Earnings analysis · 10-Q
ALG earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
Alamo Group posted 8% Q2 revenue growth to $450.7 million, led by Industrial Equipment acquisitions and 3% organic segment growth, while adjusted EPS of $2.82 beat the supplied consensus estimate. However, GAAP diluted…
Read full summary
Alamo Group posted 8% Q2 revenue growth to $450.7 million, led by Industrial Equipment acquisitions and 3% organic segment growth, while adjusted EPS of $2.82 beat the supplied consensus estimate. However, GAAP diluted EPS declined to $2.55 from $2.57, as gross margin fell 125 basis points to 24.6%, Vegetation Management operating income fell 30%, and interest expense increased. Management expects facility-optimization disruptions to pressure revenue and margins through the balance of 2026, although it expects eventual capacity, service, and structural-cost benefits.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.55
What stood out
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Revenue grew 8% and beat consensus
Q2 net sales rose $31.6 million, or 8%, to $450.7 million from $419.1 million a year earlier; sales also increased from $417 million in Q1 2026. Revenue exceeded the supplied consensus estimate of $441.674 million by $9.059 million.
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Industrial Equipment led growth
Industrial Equipment sales increased $30.9 million, or 13%, to $271.6 million, with 3% organic growth. Segment operating income rose 7%, supported by acquired Ring-O-Matic and Petersen Industries operations and operating-efficiency gains.
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Sequential EPS recovery and adjusted beat
Reported diluted EPS was $2.55, improving from $2.41 in Q1 2026, while adjusted EPS of $2.82 exceeded the supplied $2.78 consensus estimate. GAAP EPS was $2.57 in Q2 2025.
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First-half revenue expanded 7%
First-half sales rose $57.9 million, or 7%, to $867.9 million, with Industrial Equipment up $45.6 million, or 10%, and Vegetation Management up $12.3 million, or 4%.
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Liquidity capacity remains substantial
The company arranged a credit facility totaling $602.5 million, including a $400.0 million revolver; after $62.5 million of revolver borrowings and $3.2 million in letters of credit, available borrowings were $334.3 million at June 30.
What to watch
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Backlog and organic orders declined
Backlog fell $137.9 million, or 20%, to $549.3 million from $687.2 million a year earlier. Industrial Equipment backlog declined 28% and organic new orders declined 12%, reflecting normalized demand and shorter lead times.
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Margins compressed materially
Gross margin contracted 125 basis points year over year to 24.6% from 25.8%, and operating margin declined 100 basis points to 10.2% from 11.2%. Management cited lower municipal mowing volume and facility-consolidation production inefficiencies.
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Municipal mowing weakness hurt profits
Vegetation Management sales were essentially flat at $179.1 million versus $178.4 million, while segment operating income declined 30% because lower municipal mowing sales offset agricultural and tree-care improvement.
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Optimization costs may persist
Q2 included $4.3 million of restructuring, acquisition-related, and integration costs, including $3.5 million in SG&A. Management expects additional temporary inefficiencies, duplicate costs, shipment-timing effects, and potentially one-time relocation and facility-exit expenses during the rest of 2026.
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Acquisition debt increased interest burden
Interest expense rose $1.1 million to $4.8 million in Q2 as acquisition financing increased debt; $263.7 million was outstanding under the new credit agreement, including $201.2 million under the term facility and $62.5 million under the revolver.
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No formal risk-factor updates; FX/rate exposure
Item 1A states there were no material changes from risk factors disclosed in the 2025 Form 10-K. Nonetheless, the filing quantifies exposure to a 10% U.S.-dollar move at $6.2 million of six-month gross profit and a 2-percentage-point rate move at approximately $1.3 million of interest expense.
Management's outlook
No revenue or EPS guidance was provided in the 10-Q. Management expects 2026 capital expenditures of approximately $28.0 million to $33.0 million and expects facility-optimization work through the remainder of 2026 to create temporary production inefficiencies, duplicate costs, shipment-timing effects, and pressure on revenue and gross margin before expected structural cost benefits.
Earlier filings 4
10-K · March 2, 2026
Alamo Group describes a strategy of organic growth plus targeted acquisitions across two divisions (Vegetation Management and Industrial Equipment) and a broad global dealer network; the company operates ~3,800…
10-Q · May 8, 2025
Alamo Group reported Q1 net sales of $390.95 million, down 8% year-over-year, with gross margin marginally higher at 26.3% and operating margin improving to 11.4%. Diluted EPS was $2.64 (vs. $2.67 prior year) and net…
10-K · February 27, 2025
Alamo Group positions itself as a niche leader in vegetation management and infrastructure maintenance equipment, pursuing growth through product development and targeted acquisitions and operating across two reportable…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.